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Trading arrangements and industrial development

Diego Puga () and Anthony Venables ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper outlines a new approach for analysing the role of trade in promoting industrial development. It offers an explanation as to why firms are reluctant to move to economics with lower labour costs, and shows how trade liberalisation can change the incentives for firms to locate in developing countries. Unilaterally liberalising imports of manufcatures can promote industrialisation, but membership of a preferential trading arrangement is likley to create larger gains. South-South PTAs will be sensitive to the market size of member states, while North-South PTAs seem to offer better prospects- for participating Southern economies, if not for excluded countries.

Keywords: preferential arrangements; industrialisation; development; linkages (search for similar items in EconPapers)
JEL-codes: R12 F12 (search for similar items in EconPapers)
Date: 1996-12
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Downloads: (external link)
http://eprints.lse.ac.uk/2284/ Open access version. (application/pdf)

Related works:
Journal Article: Trading Arrangements and Industrial Development (1998)
Working Paper: Trading arrangements and industrial development (1997) Downloads
Working Paper: Trading Arrangements and Industrial Development (1996) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2284

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